Perennial International Limited provided consolidated earnings guidance for the year ended 31 December 2018. For the period, based on its preliminary review on the relevant unaudited consolidated management accounts of the Group, the company expects that it will record a loss attributable to shareholders of the Company for the year ended 31 December 2018 as compared to the net profit position for the year ended 31 December 2017, mainly due to decrease in sales and hence gross profit as a result of the intense competition in the market; higher operating cost in the People's Republic of China (the PRC); and higher depreciation charge as a result of increase in fair value of buildings in Hong Kong; and the new plant in Dongyuan County, Heyuan City, the PRC, following the completion of its construction in June 2017.